The Economic Benefits of the U.S. Department of Energy for the State of Tennessee, 2008

Author: Matthew N. Murray, Bryan Shone, Kara Mitchell

Publication Date: April 1, 2009

Since the U.S. Department of Energy (DOE) first sited its facilities in Tennessee in the 1940s, its operations have made significant contributions to the state of Tennessee, its residents and local governments. The DOE’s on-going operating budget yields significant benefits to the state economy through the creation of jobs and income, increases in state output and expansions in state and local tax bases. Even though the DOE’s primary presence in the state is in Anderson and Roane Counties, locatedadjacent to the Knoxville Metropolitan Statistical Area, the economic benefits accrue statewide. The spillover of benefits into the rest of the state can be attributed to the ripple effect of initial economic benefits as well as the numerous programs offered by the DOE to companies located within the state. The Center for Business and Economic Research (CBER) at the University of Tennessee started conducting an in-depth analysis of the annual economic benefits for Tennessee attributable to the operations of the DOE in 1999. The current report represents the seventh analysis and presents the economic benefits of the DOE for Fiscal Year 2008. The remainder of the report consists of three sections. First, the next section provides a profile of the activities of the DOE. Second, Section III provides a detailed analysis of the economic benefits for Tennessee in terms of output, income, jobs and sales tax revenue arising from activities of the DOE and its major contractors. Finally, Section IV summarizes many highlights and accomplishments that were noteworthy during Fiscal Year 2008.